After shedding trencher and auger boring businesses in August, Toro plans to acquire Canadian-based hydrovac truck manufacturer Tornado Infrastructure Equipment as part of its growing focus on underground construction products.
Toro has had an agreement since 2022 with Tornado to co-develop Ditch Witch-branded hydrovac trucks. Hydrovac trucks have been growing in popularity as a safer way to excavate in urban areas and around buried utilities. The trucks deploy high-pressured water or air and suction power to excavate.
Tornado was formed in 1984 and has grown to about $106 million (USD) in net sales for a 12-month period ending June 30, 2025. Toro will buy all the outstanding shares of Tornado stock for $1.36 (USD) per share, a 4% premium. The fully diluted equity value is about $198 million (USD). It is financing the purchase via “debt from existing credit facilities and additional financial arrangements,” Toro says.
“This acquisition will help expand both our geographical footprint and product range to better serve customers facing complex projects in energy, power transmission and water infrastructure,” says Peter Moeller, Toro group vice president for underground and specialty construction.
Brett Newton, Tornado president and CEO, said his company’s values closely align with Toro’s, and the acquisition will expand its business and help it develop innovative solutions for the global above-ground and underground infrastructure industry. “This partnership enhances our ability to grow, support our employees and meet the evolving needs of our customers for many years to come."
The acquisition faces approval from Tornado’s shareholders and regulatory agencies. It is expected to be completed in the first quarter of Toro’s fiscal 2026.
The deal follows Toro’s sale of its Trencor brand and the auger boring business under the American Augers brand in August.
